UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`
`Washington, D.C. 20549
`
`FORM6-K
`
`REPORT OF FOREIGN PRIVATE ISSUER
`Pursuant to Rule 13a-16 or 15d-16
`of the Securities Exchange Act of 1934
`
`FEBRUARY 9, 2009
`
`NOVO NORDISK A/S
`(Exact name of Registrant as specified in its charter)
`
`Novo Alie
`DK- 2880, Bagsvaerd
`Denmark
`(Address of principal executive offices)
`
`Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F
`
`Form 20-F [X]
`
`Form 40-F [ ]
`
`Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the
`Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
`
`If"Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g-32(b):82-~~~~~~~~~-
`
`Yes []
`
`No[X]
`
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`IPR2018-01676
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`Back to Contents
`
`novo nordisk
`annual report 2008
`
`Finandal, social and environmental performan ce
`
`nova, nord lsk
`
`Sanofi Exhibit 2136.002
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

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`Sanofi Exhibit 2136.003
`Mylan v. Sanofi
`Mylan v. Sanofi
`IPR2018-01676
`lPR2018-01676
`
`

`

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`
`Performance
`highlights
`2008
`
`Financial performance
`
`Sales total
`
`Diabetes care
`
`Of which modern insulins
`
`Biopharmaceuticals
`
`Gross profit
`
`Gross margin
`
`Sales and distribution costs
`
`Research and development costs
`
`Research and development costs excl AERx® *)
`
`Administration expenses
`
`Operating profit
`
`2008
`
`2007
`
`Change
`
`DKK million
`
`45,553
`
`41,831
`
`DKK million
`
`33,356
`
`30,478
`
`9%
`
`9%
`
`DKK million
`
`17,317
`
`14,008
`
`24%
`
`DKK million
`
`12,197
`
`11,353
`
`7%
`
`DKK million
`
`35,444
`
`32,038
`
`11%
`
`%
`
`% of sales
`
`% of sales
`
`% of sales
`
`77.8
`
`28.2
`
`17.2
`
`16.5
`
`76.6
`
`29.6
`
`20.4
`
`17.2
`
`% of sales
`
`5.8
`
`6.0
`
`DKK million
`
`12,373
`
`8,942
`
`38%
`
`Operating profit excl AERx® *)
`
`DKK million
`
`12,698
`
`10,267
`
`24%
`
`Net profit
`
`Effective tax rate
`
`Capital expenditure
`
`Free cash flow
`
`Long-term financial targets
`
`Operating profit growth
`
`Operating profit growth excl AERx® *)
`
`DKK million
`
`9,645
`
`8,522
`
`13%
`
`%
`
`24.0
`
`22.3
`
`DKK million
`
`1,754
`
`2,268
`
`(23%)
`
`DKK million
`
`11,015
`
`9,012
`
`22%
`
`%
`
`%
`
`38.4
`
`23.7
`
`(1.9)
`
`12.6
`
`Sanofi Exhibit 2136.004
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`Operating margin
`
`Operating margin excl AERx® *)
`
`Return on invested capital (ROIC)
`
`Cash to earnings (three-year average)
`
`Non-financial performance
`
`%
`
`%
`
`%
`
`%
`
`27.2
`
`27.9
`
`37.4
`
`97.6
`
`21.4
`
`24.5
`
`27.2
`
`87.0
`
`Employment impact worldwide
`
`Number of jobs
`
`88,500
`
`81,600
`
`8%
`
`Water consumption
`
`Recycling percentage (waste)
`
`CO2 emissions
`
`Employees
`
`Employee turnover rate
`
`Engaging culture (employee engagement)
`
`New patent families (first filing)
`
`Share performance
`
`Dividend per share (proposed)
`
`Closing share price (B shares)
`
`Market capitalisation (B shares)**)
`
`1,000m3
`
`2,684
`
`3,231
`
`(17%)
`
`%
`
`1,000 tons
`
`51
`
`215
`
`38
`
`236
`
`(9%)
`
`FTE
`
`26,575
`
`25,516
`
`4%
`
`%
`
`12.1
`
`11.6
`
`Scale 1-5
`
`Number
`
`4.2
`
`71
`
`4.1
`
`116
`
`(39%)
`
`DKK
`
`DKK
`
`DKK billion
`
`6.00
`
`4.50
`
`33%
`
`271
`
`135
`
`335
`
`(19%)
`
`172
`
`(22%)
`
`**l Excluding non-recurring costs related to discontinuation of all pulmonary diabetes projects.
`
`**l Novo Nordisk B shares (excluding treasury shares).
`See more financial and non-financial highlights on pp 16-17.
`
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`IPR2018-01676
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`Back to Contents
`
`About
`Novo Nordisk's
`annual reporting
`
`Novo Nordisk is the world leader in diabetes care and has
`leading positions within haemostasis management, growth
`hormone therapy and hormone replacement therapy. The
`company also has an ambition to build a strong platform within
`inflammation.
`
`With over 27,000 employees in 81 countries, Novo Nordisk
`manufactures and markets pharmaceutical products and
`services that make a significant difference to patients, the
`medical profession and society.
`
`This is the fifth consecutive year of reporting on the company's
`financial and non-financial performance in one inclusive
`document, the Annual Report, covering the fiscal year 2008. The
`report discusses key challenges and strategic initiatives to
`develop the business in order to meet targets and sustain long(cid:173)
`term value creation. It also explains Novo Nordisk's way of doing
`business as a values-based company guided by a vision.
`
`The feature articles present company-driven activities in pursuit
`of the Novo Nordisk Vision and respond to concerns identified
`through interactions with shareholders, financial analysts and
`other stakeholders during the year.
`
`External opinion leaders have been invited to contribute their
`perspectives on some of the key issues: the current economic
`climate, challenges in the healthcare industry and marketplace,
`new treatment paradigms for diabetes care and the
`interrelationship of the global climate change and a healthy
`future.
`
`Designed to meet the information needs of shareholders,
`financial analysts and other corporate stakeholders, the report
`seeks to support business performance and enhance
`shareholder value by exploring the interactions between financial
`and non-financial objectives.
`
`internal controls for financial reporting. Novo Nordisk embarked
`in 2008 on a process of structuring the control environment for
`non-financial data with the aspiration to have full alignment
`with the control environment for financial data.
`
`• The accountability standard, the AA 1000 Framework.
`
`• Global Reporting Initiative (GRI) G3 Sustainability Reporting
`Guidelines.
`
`• UN Global Compact, Communication on Progress.
`
`In the absence of global standards for inclusive reporting, the
`Annual Report is prepared in respect of current best practice for
`financial and non-financial reporting, respectively. This includes
`applying the principles of materiality, completeness and
`responsiveness.
`
`Novo Nordisk has chosen to apply the term 'non-financial
`reporting' to performance on sustainability-driven issues. Hence,
`the Annual Report includes both financial statements and non(cid:173)
`financial statements, while the narrative parts of the report
`present the company's performance from an inclusive
`perspective.
`
`The accuracy, completeness and reliability of the company's
`reporting is verified through internal controls, assurance and
`independent audits.
`
`The Annual Report 2008 includes the financial statements of the
`parent company, Novo Nordisk A/S (see pp 105-112), and is
`issued in February 2009 for approval by shareholders at the
`Annual General Meeting on 18 March 2009. It is subsequently
`filed with the Danish Commerce and Companies Agency. In
`addition, a Form 20-F Report for 2008 is filed with the United
`States Securities and Exchange Commission in February 2009.
`
`Novo Nordisk is in compliance with applicable corporate
`governance codes and follows current international standards for
`mandatory and voluntary reporting:
`
`These two public filings contain references and links to
`information posted on the Company's website; such information
`is not incorporated by reference into the public filings.
`
`• International Financial Reporting Standards (IFRS).
`
`• AA 1000 Assurance Standard (2003).
`
`• US Sarbanes-Oxley Act requirements for documenting and
`reporting on the effectiveness of
`
`Additional reporting online provides more background, context
`and data. Many sections of this report reference additional online
`information and an index on p 116 provides links to online
`content at annualreport2008.novonordisk.com .
`
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`Back to Contents
`
`
`
`Sanofi Exhibit 2136.007
`Sanofi Exhibit 2136.007
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`

`

`Charlotte Lucas 0sterlund expresses the full effect of living with diabetes at the 2008 meeting of the European Association for the Study of Diabetes in Rome.
`
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`
`Fifteen Novo Nordisk employees marked World Diabetes Day in Denmark by running a marathon from the company's headquarters, past several company sites, to the
`
`Changing Diabetes® Village in the centre of Copenhagen, Denmark.
`
`Welcome to
`Novo Nordisk
`■ Pages 2-7
`
`2 Our focus is our strength
`4 Managing in the current
`economic climate
`6 Novo Nordisk at a glance
`
`Business
`results
`■ Pages 8-19
`
`8 Performance in 2008
`15 Outlook for 2009
`16 Financial highlights
`17 Non-financial highlights
`18 Pipeline progress
`
`Business
`environment
`~ Pages 20-29
`
`Diabetes care
`■ Pages 30-37
`
`30 Changing diabetes is possible
`32 Supporting individualised
`treatment options
`34 Setting an agenda for change
`36 Ensuring access to care
`
`Biopharma(cid:173)
`ceuticals
`D Pages 38-41
`
`38 Focusing on strengths
`in biopharmaceuticals
`40
`Living with haemophilia
`41 Changing possibilities for
`people with haemophilia
`
`Shareholder
`information
`■ Pages 42-50
`
`Consolidated
`financial and
`non-financial
`statements
`2008
`
`Pages 51-104
`
`51 Consolidated financial and
`non-financial statements
`52 Consolidated financial statements
`89 Consolidated non-financial
`statements
`
`Pages 105-112
`
`105 Financial statements of
`the parent company
`
`Pages 113-115
`
`113 Management statement
`114 Auditor's reports
`
`Additional
`
`Sanofi Exhibit 2136.009
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`

`20 Doing business the Novo Nordisk
`Way
`21 Values drive performance
`22 Pursuing a focused strategy
`24 Manag ing risks
`26 Universal principles guide action
`27 Diversity supports global growth
`28 Strengthening environmental
`management
`
`42 Corporate governance
`44 Executive remuneration
`46 Board of Directors
`48 Executive Management
`49 Shares and capital structure
`
`information
`
`■ Page 116 and inside back cover
`
`116
`
`Index
`• Contacts
`• References
`• Novo Nordisk key products
`
`Novo Nordisk Annual Report 2008
`
`1
`
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`
`■ Welcome to Novo Nordisk Our focus is our strength
`
`Our focus
`■ 1s our
`strength
`
`The year 2008 is likely to be remembered by many as the year
`when, like a flash of lightning, a severe economic crisis brought
`an end to the belief in uninterrupted growth. The globalisation we
`have witnessed in recent years, which has had many positive
`effects, suddenly showed another face: no nation, no company
`and no individual is unaffected by the economic downturn.
`Businesses, large and small, are in crisis. Some that were
`considered icons in their industries no longer exist.
`
`Against such a backdrop it is with great humility, but also with
`pride and satisfaction, that we can report on a year that has
`been very positive for Novo Nordisk, demonstrating the results of
`our focused business approach. We increased sales by 12%
`(measured in local currencies) and our reported operating profit
`by 38%. Our investment in research and development resulted in
`a strengthened pipeline of new products. And we continued to
`optimise processes and globalise our sales and production
`activities, which makes our organisation even better prepared for
`challenges in coming years.
`
`One of the reasons why Novo Nordisk came through 2008 in
`better shape than many other companies is that we produce
`lifesaving medicines. Our customers, particularly people with
`chronic conditions, require treatment during recessions as well
`as periods of economic prosperity. But a great deal of our
`success is attributable to our more than 27,000 Novo Nordisk
`colleagues who have once again delivered excellent results. With
`doctors and patients, in the laboratories, in production, in
`administration and throughout our value chain, there has been a
`focus on achieving results for all stakeholders both in the short
`and long term.
`
`Innovation boosts competitiveness
`Innovation in our pipeline is the source of long-term
`competitiveness in our industry, and in this area 2008 was very
`eventful.
`
`Not everything has worked out as planned. In early 2008, we
`discontinued our attempts to develop inhalable insulin. Later in
`the year we had to reconcile ourselves to the fact that the effect
`of NovoSeven® for treatment of acute bleeds in trauma could not
`
`Liraglutide has the potential to improve the treatment of type 2
`dia betes. Even though requirements for approval of new
`medicines have become increasingly challenging, we are
`cautiously optimistic about the final outcome of regulatory
`assessment. We currently anticipate regulatory approval in the
`US and some European countries in 2009, followed by Japan
`and a number of other countries in 2010.
`
`We know that even the best insulins available in the market
`today are not perfect. Phase 2 results for the company's new
`generation of insulins have demonstrated that long-acting
`insulins and insulins with a combined short- and long-acting
`effect can be further improved. If preliminary results are
`confirmed by additional trials, this new generation of insulins has
`the potential to offer better treatment for people with diabetes
`and to strengthen Novo Nordisk's competitive position.
`
`In 2008, we decided to focus our biopharmaceutical research
`efforts in haemostasis, growth disorders and inflammation.
`Research in inflammation will be conducted by our Danish
`research organisation and a newly established research centre
`for inflammation in Seattle, US. Collaboration with a number of
`biotech companies also plays a significant role in our ability to
`bring new products to market in this area.
`
`In 2008, Novo Nordisk made two significant
`breakthroughs that may have great impact on
`future diabetes treatment.
`
`International expansion supports growth
`In the diabetes market we have maintained our position as the
`world leader with a market share of more than 50% by volume.
`Demand for our products has increased and we see a continuing
`transition from traditional human insulin to modern insulins. Novo
`Nordisk won market share for modern insulins in 2008 and
`remains the only company with a full portfolio of short-acting,
`
`Sanofi Exhibit 2136.011
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`be proven in controlled clinical trials within the foreseeable future.
`We also decided to discontinue trials to investigate the benefits
`of growth hormone therapy for dialysis patients because of the
`difficulty in recruiting trial participants.
`
`mixed and long-acting insulins. To expand our competitive
`position and brand awareness, not least among general
`practitioners, we have expanded our sales organisation in several
`key markets.
`
`However, 2008 will mostly be remembered as the year in which
`Novo Nordisk made two significant breakthroughs that may have
`great impact on future diabetes treatment. The development of
`liraglutide for the treatment of type 2 diabetes was finalised and
`regulatory approval was sought in the US, Europe, Japan and
`many other countries. In addition, a new generation of insulins
`for both type 1 and type 2 diabetes showed promising results in
`phase 2 trials.
`
`In November, we laid the foundation stone for a major expansion
`of our production site in Tianjin, China, which will create 500 new
`jobs. The new insulin formulation and filling plant is one of the
`largest investments in the history of Novo Nordisk and our
`biggest single investment outside Denmark. The second-largest
`single investment, the production site in Montes Claros, Brazil,
`became fully operational in 2008 and today provides insulin to a
`number of markets.
`
`2 Novo Nordisk Annual Report 2008
`
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`

`Back to Contents
`
`Welcome to Novo Nordisk Our focus is our strength ■
`
`Sten Schei bye, chairman of the Board of Directors, and Lars Rebien S0rensen, president and chief executive officer.
`
`Managing responsibly
`Many readers of this Annual Report will know that Novo Nordisk
`is managed using the Triple Bottom Line business principle. We
`assess our performance from three perspectives: financial, social
`and environmental. As we see it, a business can only be
`sustainable in the long term if it meets stakeholders'
`expectations in relation to all three aspects.
`
`life-saving medicines. The increasing prevalence of chronic
`disease is already a major financial burden with treatment costs
`putting pressure on healthcare budgets, even in wealthy
`countries. It will be a huge challenge to finance public health
`systems in the future in a way that makes it attractive to bring
`new and improved medicines to market and at the same time
`secure equal access to care.
`
`In this report we provide examples of how we conduct our
`activities in ways that are socially and environmentally
`responsible. We think a couple of them deserve particular
`mention.
`
`In November, we announced a new programme to offer diabetes
`treatment, including free insulin, to 10,000 children in some of
`the world's poorest countries. This is part of a five-year
`programme called 'Changing the Future for Children with
`Diabetes', which begins in 2009. In addition to making free
`insulin available to a particularly vulnerable population of people
`with diabetes, the project will also build long-term solutions for
`distribution of insulin and sustainable diabetes treatment in the
`world's poorest countries.
`
`We are well on our way to achieving the ambitious target for CO2
`reduction we set for ourselves in 2006 and, as a result of our
`efforts, the majority of our future electricity supplies will be
`generated from wind. Just as the financial crisis is global, so is
`climate change, and everyone must take responsibility for
`addressing it. We will leave it to the scientists to debate to what
`
`It is well known that new medicines are needed to improve the
`treatment of many diseases, but it is also evident that public
`healthcare providers and insurance companies are subjecting the
`costs versus the benefits of new medicines to increased
`scrutiny. At the same time, increasing requirements to
`document potential long-term side effects make bringing new
`treatments to market even more costly. These challenges
`impact the outlook for the entire industry.
`
`At Novo Nordisk we are, however, optimistic about the future.
`With our focus on diabetes care and biopharmaceutical niche
`products, we believe that we are uniquely placed. We also
`believe our unique market position justifies further investment in
`our research and development and in expanding our international
`organisation and global supply through controlled growth and
`with continued focus on financial results.
`
`We would like to take this opportunity to thank our customers,
`shareholders and partners for their trust in Novo Nordisk during
`2008. We also thank everyone at Novo Nordisk for their great
`efforts, creativity and engagement, which is the heart of our
`
`Sanofi Exhibit 2136.013
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`extent climate change is human-induced or caused by natural
`developments that are not related to human activity. There are,
`however, many reasons, including financial, for managing a
`business in a way that minimises environmental impact, and we
`will retain our focus on this in coming years.
`
`Challenges ahead
`The pharmaceutical industry today is faced with a number of
`challenges that have certainly not diminished with the current
`global recession.
`
`We believe that the current economic downturn will impair
`societies' and individuals' ability to pay for healthcare, including
`
`organisation and the foundation of the strong results presented in
`this report.
`
`Lars Rebien S0rensen
`
`Sten Scheibye
`
`President and
`chief executive officer
`
`Chairman of the
`Board of Directors
`
`Novo Nordisk Annual Report 2008
`
`3
`
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`
`■ Welcome to Novo Nordisk Managing in the current economic climate
`
`Managing in the current
`economic climate
`
`Interview with Novo Nordisk's CFO, Jesper Brandgaard
`
`In your opinion, what impact will the
`current economic downturn have on
`the pharmaceutical industry?
`
`We have to recognise that this crisis is
`not only global, it is severe, and it is
`likely to be of significant duration. There
`are profound implications for wealth and
`growth throughout the world. Even in a
`sector less impacted by short-term
`economic swings, such as the
`pharmaceutical sector, there is a clear
`correlation between long-term economic
`growth at the societal level and growth
`opportunities for companies.
`
`We believe the pharmaceutical sector
`will first see an impact in economies
`that are largely dependent on exporting
`either goods or raw materials. Oil price
`volatility is, of course, important in this
`regard. Societies such as Russia,
`Algeria and Venezuela may experience
`an impact on their ability to procure
`advanced pharmaceutical products.
`
`In many countries, notably in Europe,
`pressure to reduce the growth of public
`spending for pharmaceutical products
`will increase, with more substitution of
`generic products. There will also be
`greater emphasis on health economics
`to make sure that products paid for by
`society are achieving the desired health
`outcomes.
`
`With the new administration in
`Washington, there is a high likelihood
`that 2009 will bring price reform in
`government-funded healthcare
`programmes such as Medicaid and
`Medicare. We have said that there has
`
`are likely to face higher co-payments.
`Everything else being equal, it will be
`increasingly difficult to obtain
`reimbursement for new, advanced
`treatments.
`
`of the Novo Group companies, including
`Novo Nordisk. Beyond the Foundation,
`we have experienced changes in the
`holdings of other large investors, notably
`US investors repatriating funds.
`
`How do you see the financial crisis
`impacting the structure of the
`industry?
`
`There is still a profound need for large
`pharmaceutical companies to acquire
`innovation. These companies are gene
`rating significant positive cash flows but
`are challenged by lack of innovation and
`regulatory hurdles. At the same time,
`small biopharm companies that do not
`yet have products on the market will
`have increasing difficulty accessing
`long-term venture capital. These firms
`are likely to either look for opportunities
`to partner with larger fi rms or put
`themselves up for sale. In this
`environment, we expect to see
`consolidation in the industry.
`
`We have not changed
`direction; we have stayed the
`course, and we believe this
`will now present us with new
`opportunities.
`
`How was Novo Nordisk impacted by
`market volatility in 2008?
`
`While Novo Nordisk has continued to
`
`We have also seen a number of Danish
`pension institutions reducing their
`holdings in Novo Nordisk in order to
`maintain portfolio diversification. The
`challenge in the Danish stock exchange
`environment is that the relative
`performance of Novo Nordisk compared
`with other companies listed on
`NASDAQ OMX Copenhagen increased
`Novo Nordisk's weighting on the
`exchange dramatically during 2008.
`
`So we have seen the shareholdings of
`some of the company's largest investors
`reduced. At the same time, we have
`seen solid support from new European
`and US investors, as well as from retail
`investors in Denmark.
`
`These changes have not impacted the
`way the company interacts with the
`equity market, but have highlighted the
`need to be very transparent.
`
`How does Novo Nordisk manage its
`balance sheet, and have there been
`recent changes in direction?
`
`Historically, Novo Nordisk, like most
`pharmaceutical and large-cap biopharm
`firms, has had a balance sheet with little
`debt. In fact, Novo Nordisk has operated
`with slightly positive net financial assets
`on its balance sheet. This is an
`advantage because having access to
`cash can now provide us with interesting
`
`Sanofi Exhibit 2136.015
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`been an advantage for the industry from
`the migration of patients from Medicaid
`to the Medicare Part D programme and
`we did not think this was sustainable.
`The details of a potential pricing reform
`remain to be seen, but we do anticipate
`changes in some of the schemes funded
`by the federal government, including
`Medicare Part D.
`
`In the private health insurance market in
`the US, we are also looking at a
`scenario where funds are getting tighter.
`Patients
`
`4 Novo Nordisk Annual Report 2008
`
`have strong sales and cash flow and has
`not experienced any liquidity issues,
`recent market turmoil has had a bigger
`impact on the composition of Novo
`Nordisk's shareholder base than we
`originally anticipated.
`
`Novo Nordisk's largest shareholder
`continues to be The Novo Nordisk
`Foundation through the Novo A/S
`holding company. The Foundation has
`bylaws stating that its primary objective
`is to be a stable owner
`
`investment possibilities. We have not
`changed direction; we have stayed the
`course, and we believe this will now
`present us with new opportunities.
`
`In terms of cash returned to
`shareholders, Novo Nordisk has adhered
`to its dividend policy of gradually
`increasing the payout ratio to a level
`around the pharma industry average,
`which is now approximately 40%.
`
`Sanofi Exhibit 2136.016
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`Back to Contents
`
`Welcome to Novo Nordisk Managing in the current economic climate ■
`
`What impact did exchange rate
`fluctuations have on the company in
`2008?
`
`One obvious example of the impact that
`currency developments had on Novo
`Nordisk in 2008 was the impact on
`sales growth. In 2008, Novo Nordisk
`achieved sales growth of 12% when
`adjusted for the impact of currencies.
`However, in reported terms sales growth
`was 9% due to negative exchange rate
`impact compared to the Danish kroner
`of approximately 3%, or more than 1
`billion kroner.
`
`For a company with global operations
`like Novo Nordisk, extreme volatility
`requires that we be ever more
`transparent in our disclosures. In the
`longer term, it also requires that we
`continue to make investments globally
`that help to balance our long-term
`currency exposure.
`
`A good example of this is the 400
`million US dollar investment the
`company committed to make in China in
`2008 for a new production facility.
`Beyond the attractiveness of the project
`in a growing market, the investment will
`help provide Novo
`
`Jesper Brandgaard, chief financial officer.
`
`Nordisk with a better balance between
`the company's income base and cost
`base. In addition, the more assets the
`company has in China, the easier it
`becomes to attract local talent.
`
`Are there lessons that Novo Nordisk
`has learned from previous economic
`downturns that apply to the current
`situation?
`
`Previous downturns we've seen in recent
`years have been confined to specific
`regions, such as the Asian currency
`crisis in the late 1990s. The current
`downturn is likely to turn into a global
`recession with wide-ranging
`implications, some of which will be
`difficult to predict.
`
`Cautious spending behaviour combined
`with a willingness to invest in markets
`with long-term growth prospects will
`continue to be the cornerstones of Novo
`Nordisk's strategy. In the longer term,
`this approach, along with a commitment
`to managing responsibly, has proven to
`be integral to the sustainable business
`model that the company is pursuing.
`
`Fareed Zakaria
`Editor, Newsweek International
`
`Novo Nordisk invited Fareed Zakaria
`to provide his perspective on the
`global economy.
`
`A problem
`of growth
`
`I would argue that the current economic
`crisis is a problem of growth, created by
`124 countries growing simultaneously
`and by the fact that you have a single
`world economy in which everyone is
`participating, so Chinese savings can
`fuel US consumption and vice versa.
`
`The most important real world effect we
`have to worry about is countries turning
`inward. The possibility of turning away
`from the single, global market, away
`from the idea that we can create a
`greater degree of global prosperity and
`raise standards of living.
`
`The challenge for a
`company like Novo
`Nordisk is to explore
`
`Sanofi Exhibit 2136.017
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`whether it can play a
`role in trying to keep
`the Western world
`open.
`
`The challenge for a company like Novo
`Nordisk is to explore whether it can play
`a role in trying to keep the Western
`world open. This is a path most
`corporations have steered away from
`because they don't want to get
`politically involved.
`
`Dr Fareed Zakaria is editor of
`Newsweek International, host of CNN's
`Fareed Zakaria GPS, and co-host of
`PostG/obal, an online discussion of
`international issues.
`
`Novo Nordisk Annual Report 2008
`
`5
`
`Sanofi Exhibit 2136.018
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`Back to Contents
`
`■ Welcome to Novo Nordisk Novo Nordisk at a glance
`
`•
`..
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`.. . .. .
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`ii
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`• • •
`•
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`•
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`•
`•
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`II
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`• . • • ..
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`f
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`•
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`• •
`
`Novo Nordisk
`at a glance
`
`Novo Nordisk is a focused healthcare company and a world leader in diabetes care. Key
`market figures for the diabetes care business are provided here and on p 10.
`
`In its other business segment, biopharmaceuticals, Novo Nordisk has a leading position
`within the therapeutic areas of haemostasis management, growth hormone therapy and
`hormone replacement therapy. The company reports biopharmaceutical sales globally
`and by therapy area. See pp 10-11 for more information.
`
`North America
`
`International Operations
`
`Europe
`
`Sales: 33% of total sales .
`
`Sales: 19% of total sales.
`
`Sales: 38% of total sales.
`
`Insulin/modern insulin volume
`share:
`42% of the total market; 33% of the
`segment.
`
`Insulin/modern insulin volume
`share:
`57% of the total market; 57% of the
`segment.
`
`Insulin/modern insulin volume
`share:
`55% of the total market; 51 % of the
`segment.
`
`Sanofi Exhibit 2136.019
`Mylan v. Sanofi
`IPR2018-01676
`
`

`

`Performance: The number of people
`with diabetes in the US is now 24
`million, according to the national
`Centers for Disease Control (CDC), and
`this is projected to exceed 30 million
`within 10 years. The rate of new cases
`of diabetes soared by about 90% in the
`past decade, according to the CDC,
`fuelled by growing obesity and
`sedentary lifestyles.
`
`Novo Nordisk sees significant
`opportunities to improve care and
`treatment for people with diabetes in the
`US. To deliver on these opportunities,
`market access is crucial. More than
`80% of the US population is currently
`covered by medical insurance. Novo
`Nordisk's products are eligible for
`reimbursement through 90% of managed
`care formularies, a key competitive
`advantage.
`
`Performance: Novo Nordisk's
`International Operations - covering
`South and Central America, the Middle
`East, Africa and Asia (excluding Japan
`& Oceania) - is a vast area representing
`85% of the world's population and 80%
`of all people with diabetes.
`
`Lack of access to adequate diabetes
`care is a continuing concern in these
`countries, although there are
`encouraging signs that diabetes is rising
`on the public health agenda. A growing
`middle class in emerging markets such
`as China and India are also better able
`to afford more advanced treatments. The
`dramatic rise in the number of people
`with diabetes in these markets is driven
`by several factors, including
`urbanisation, an ageing population,
`unhealthy eating habits and sedentary
`lifestyles.
`
`Capacity-building: 89,500 healthcare
`professionals have been trained or
`educated through Novo Nordisk's
`National Changing Diabetes®
`programmes.
`
`Capacity-building: 151,500 healthcare
`professionals have been trained or
`educated through Novo Nordisk's
`National Changing Diabetes®
`programmes.
`
`Performance: Modern insulins are
`driving growth in the company's
`European operations. Levemir®, the
`company's basal insulin, is reinforcing
`Novo Nordisk's market leadership in the
`region.
`
`Through its affiliates, Novo Nordisk is
`driving home the message that changing
`diabetes care begins with raising
`awareness and working with partners. In
`Italy, Novo Nordisk supported a meeting
`of about 200 diabetes experts, policy(cid:173)
`makers, patient representatives,
`industry and media to discuss how to
`stop the epidemic growth of diabetes.
`Marking its 50th anniversary, Novo
`Nordisk's af